ALEXANDRIA, Va. (1/8/14)--Credit unions that have not made any high-cost mortgages in the past must still verify whether their new mortgages are exempt from the new "high-cost" thresholds in the Consumer Financial Protection Bureau's amended Home Ownership and Equity Protection Act (HOEPA) rule, the National Credit Union Administration said in a new Regulatory Alert (14-RA-02).
And, the agency added, even if a credit union does not make any high-cost mortgages under the new coverage thresholds, there are still homeownership counseling elements of the HOEPA rule with which it must comply.
The NCUA alert noted that:
Credit unions that make any federally related mortgage loan must provide a written list of homeownership counseling organizations to applicants within three days of the application;
Credit unions that make mortgage loans to first-time borrowers that permit negative amortization must confirm that the first-time borrowers have received homeownership counseling before consummation; and
Credit unions that make high-cost mortgages or open-end credit secured by a consumer's principal dwelling must comply with new HOEPA consumer protections and homeownership counseling requirements.
The alert also reminded credit unions of the upcoming Jan. 10 HOEPA rule compliance date, and credit union responsibilities under the new rule.
For the full NCUA alert, use the resource link.